Banking Secrecy

  • 13 Mar 2009 at 2:27 PM

Quitters Never Win

By Equity Private

swiss.pngC’mon Switzerland! I mean we are really disappointed in you. You were making all sorts of strong sounding noises and resisting all efforts by the OECD to expose the many self-taught creative tax accountants that comprise such a large slice of your depositors. We were rooting for you. I even put my red and white face paint on. (Scared Bess half to death in the office this morning). We were pissed when we got the news. (You know how hard it is to find red and white face paint on a Thursday night? At least, the non-toxic stuff).

Switzerland’s cabinet agreed at a meeting Friday to support negotiation of bilateral treaties with other countries, under which Switzerland would provide legal assistance for international tax-evasion probes. The treaties would be negotiated based on guidelines from the Paris-based Organisation for Economic Co-operation and Development, which require nations to waive bank secrecy for investigations of both tax evasion and tax fraud.

Oh… Switzerland. Don’t call us anymore. Seriously.
Wait… what’s this…? A glimmer of hope?

Mr. Merz says the negotiations should ensure an orderly transition to a new set of rules, including an amnesty legalizing possible tax evasion via Swiss banks prior to a treaty signing.

Ok, you can call, but not after 10:30 pm. And no ass.
As for you Swiss depositors…. move all your tax evading (avoiding) cash over right now! Supplies of Swiss Banking Secrecy™ are limited!
Swiss Relax Bank Secrecy Laws [The Wall Street Journal]
Earlier: Something Is Rotten In The Confederation of Helvetica

  • 04 Mar 2009 at 2:09 PM

Swiss Miss

By Equity Private

swiss.pngLevin has been waiting for this day a long time. (That’s Senator Carl, not Editor Bess). Swiss banks are in a great deal of trouble. First, they face rather significant trials for their liberal use of Swiss Franc as insulation for East European houses. Second, they are looking at a massive depositor exodus if their primary selling point, banking secrecy, doesn’t hold up. Right now, it is under rather serious assault.

The sanctity of the secret Swiss bank account — an icon of global finance — is under growing pressure in a tax investigation due to come into public view on Wednesday at a U.S. congressional hearing.
Senator Carl Levin, a long-time foe of offshore tax havens estimated to deprive the U.S. government of $100 billion in annual revenues, will convene the hearing before the Senate Permanent Subcommittee on Investigations that he chairs.

It will be most interesting to see if the United States can actually press Switzerland to give up one of the only features that keeps their economy relevant- and how spineless the Swiss are prepared to be.
U.S. Senate panel to question Swiss banker, secrecy [Reuters]